Question

8-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Required information The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 26,600 17,400 16,000 168,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 8,700 7,800 163,000 48,500 $228,000 $ 228,000 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $154,100, and on account, $62,200. 2. February 12 Collect on accounts receivable, $53,500. 3. April 25 Receive cash in advance from customers, $14,900. 4. May 6 Purchase supplies on account, $13,200. 5. July 15 Pay property taxes, $10,500. 6. September 10 Pay on accounts payable, $13,400. 7. October 31 Pay salaries, $143,600. 8. November 20 Issue shares of common stock in exchange for $47,000 cash. 9. December 30 Pay $4,800 cash dividends to stockholders. 8-a. Prepare the income statement for the year ended December 31, 2021.

Answer 1

ZIPS STORAGE
Income Statement
For the Year Ended December 31, 2021
Service Revenue	216,300
Expenses:
Salaries Expense	143,600
Repairs and Maintenance Expense	10,500
Net Income	62,200
ZIPS STORAGE
Balance Sheet
December 31, 2021
Assets		Liabilities
Current Assets:		Current Liabilities:
Cash	123,800	Accounts Payable	8,500
Accounts Receivable	26,100	Deferred Revenue	22,700
Prepaid Insurance	16,000
Supplies	13,200
Total Current Assets	179,100	Total Liabilities	31,200
Long-term Assets:		Stockholders' Equity
Land	168,000	Common Stock	210,000
		Retained Earnings	105,900
		Total Stockholders' Equity	315,900
Total Assets	347,100	Total Liabilities and Stockholders' Equity	347,100